Could be a whole slew of things that is causing your video quality problems. First off is the native resolution the avi files were encoded at. Realize that the Droid's screen is pretty high res, so if you are taking a low res file and converting it to 3gp, then you still get a low res result. Garbage In Garbage Out.

then there is the resolution you have set during the conversion process. Your avi source file may have an acceptable resolution, but if you are converting it to a lower resolution or bitrate, then again, your output suffers. Follow the output settings mjs31 provided as a guide. Generally you want to pay attention to framerate, bitrate and screen resolution (size) for video settings.

+1 to what mjs said. i have converted videos from avi to mp4, the quality and sound have always been excellent as long as the video/audio you're converting is quality. Follow the settings mjs gave, those are correct for all converters.

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